Central Bank Watch
Reserve Bank of India’s First Bi-Monthly Monetary Policy Review of Fiscal 2016/17
April 5, 2016
The main policy interest rate, the repo rate, was cut 25 basis points to 6.5%, lowest since 2011, while the reverse repo rate was hiked by 25 bps to 6.0%. The narrowing of the corridor between the rates was one of several actions intended to strengthen the pass-through of changes in central bank policy rates […] More
Central Bank Watch
Reserve Bank of Australia
April 5, 2016
Australia’s official cash rate was left at the record low of 2.0% that has prevailed since a 25-basis point cut in May 2015, which followed a similar reduction enacted three months earlier. Previously, the OCR was reduced in eight steps from 4.75% to 2.5% between November 2011 and August 2013. A statement released after this […] More
New Overnight Developments Abroad - Daily Update
Gold and Yen Stronger but Stocks, Bond Yields, and Emerging Market Currencies Decline
April 5, 2016
The yen is 0.6% stronger on balance, powered by a fresh wave of safe-haven seeking capital flows. Many service sector PMI reports were disappointing. Japan’s index and its composite PMI fell to one-year lows, for example. The yen touched 110.26 per dollar, its most appreciated level since October 2014. Comex gold rose 1.3% to $1,231.59. […] More
New Overnight Developments Abroad - Daily Update
Most Equities Have Firmer Tone
April 4, 2016
Friday’s post-jobs report rise in stocks has carried into Monday’s session. U.S. futures are indicated higher. Stocks rose 0.5% in India, 0.6% in Singapore and New Zealand and 0.3% in South Korea. Japan’s Nikkei slipped 0.3%, and Taiwan, China, and Hong Kong were closed, observing the Ching Ming Festival. In Europe, share prices have risen […] More
Foreign Exchange Insights and Next Week
Next Week
April 1, 2016
Central Bank Action: Interest rate policy meetings in Australia, India, Poland and Serbia. The FOMC minutes and ECB Account of their last meetings get published. A unique panel discussion among the four last Fed Chairs (Volcker, Greenspan, Bernanke and Yellen) on Thursday in NYC at International House will attract particular interest. Yellen, Mester, George, Kaplan, […] More
Deeper Analysis
March and the First Quarter in Figures
April 1, 2016
March was unlike January and February. Ten-year sovereign bond yields edged a little higher last month but recorded substantial declines in the quarter. Equities likewise performed well in March, but quarterly changes in share prices ranged from modest gains in the S&P 500 and Dow Jones Industrials to double-digit net losses in the Japanese and […] More
Deeper Analysis
U.S.-Minus-Eurozone Manufacturing PMI Spread Improved 1.9 Points in March
April 1, 2016
Mfg PMIs U.S. Euroland Spread EUR/USD Jan 2013 53.1 47.9 +5.2 1.330 February 53.1 47.9 +5.2 1.334 March 51.5 46.8 +4.7 1.295 April 50.0 46.7 +3.3 1.301 May 50.0 48.3 +1.7 1.299 June 52.5 48.8 +3.7 1.319 July 54.9 50.3 +4.6 1.309 August 56.3 51.4 +4.9 1.331 September 56.0 51.1 +4.9 1.335 October 56.6 51.3 […] More
New Overnight Developments Abroad - Daily Update
Markets Fooled by Succession of Surprises
April 1, 2016
First oil tumbled almost 4% when a top Saudi political official said Saudi participation in a production freeze would be condition on full solidarity of the whole OPEC cartel, including Iran, in the effort. The pall cast over Asian and European investor sentiment was reflected in share price losses of 3.6% in Japan, 1.6% in […] More
